Taking of cenvat return.

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Anil S Varade (Querist)

28 February 2013 Please Help..
If SEZ unit supply material to manufacturer(imported raw material) which tax are applicable weather we can availed cenvat on that invoice.
thanks in advance.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

28 February 2013 THEN you WILL BE admissible for DEEMED EXPORT BENEFIT.

supplies to a SEZ unit are exempt from excise duty.
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Under the Cenvat Credit Rules, 2004 (CCR), where the finished goods are exempt from excise duty, the manufacturer is required to either reverse proportionate Cenvat credit availed in respect of inputs and input services used in the manufacture of exempt goods, or pay 6% of the sale turnover of exempt goods. Alternatively, separate accounts can be maintained for goods and services used in the manufacture of excisable and exempt goods respectively, and Cenvat credit can be availed in respect of inputs and input services used in the manufacture of excisable goods only.

However, in case of supplies to SEZ units, export oriented units, etc, the manufacturer is not required to comply with any of the above requirements. In case of such supplies, full Cenvat credit is available on inputs and input services even though excise duty is not leviable on the finished goods. Accordingly, in your case, no reversal of Cenvat credit would be required in case of supplies to SEZ units without payment of excise duty.

REGARDS,

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